Florida Senate - 2009              PROPOSED COMMITTEE SUBSTITUTE
       Bill No. SB 1154
       
       
       
       
       
                                Barcode 771854                          
       
       579-03504-09                                                    
       Proposed Committee Substitute by the Committee on
       Communications, Energy, and Public Utilities
       
    1                        A bill to be entitled                      
    2         An act relating to energy; amending s. 366.92, F.S.;
    3         revising definitions and providing additional
    4         definitions; requiring that electric utilities meet or
    5         exceed specified standards for the production or
    6         purchase of clean energy; establishing a schedule for
    7         compliance; providing a penalty if a utility fails to
    8         meet the standards; authorizing the Public Service
    9         Commission to excuse certain electric utilities from
   10         compliance under specified conditions; requiring the
   11         commission to adopt rules; requiring an annual report
   12         to the Legislature; amending s. 366.93, F.S.;
   13         authorizing the Public Service Commission to allow a
   14         utility to recover the costs of converting an existing
   15         fossil fuel plant to a biomass plant under certain
   16         conditions; creating s. 366.99, F.S.; providing a
   17         short title; providing legislative findings with
   18         respect to the need to reduce greenhouse gas emissions
   19         through the direct, end-use of natural gas; defining
   20         terms; authorizing a utility to establish a surcharge
   21         for the purpose of constructing natural gas
   22         installations in areas that lack natural gas service;
   23         providing limitations on the surcharge; providing
   24         procedures for determining the surcharge and making
   25         filings to the commission; requiring the commission to
   26         conduct limited proceedings to determine the amount of
   27         the surcharge; providing for future expiration of
   28         provisions authorizing the surcharge; amending s.
   29         377.6015, F.S.; providing that terms for members of
   30         the Florida Energy and Climate Commission begin and
   31         end on specified dates; amending s. 525.09, F.S.;
   32         imposing certain fees, to be used for carbon
   33         reduction, on alternative fuel containing alcohol and
   34         imposing an additional charge on gasoline, diesel,
   35         kerosene used for certain purposes, and #1 fuel oil
   36         for sale or use in the state; providing requirements
   37         for remitting the fee; amending s. 525.10, F.S.;
   38         providing for the deposit of carbon-reduction fees
   39         into the Florida Renewable Energy Trust Fund and the
   40         General Revenue Fund; requiring the Florida Energy and
   41         Climate Commission to prepare a report that identifies
   42         ways in which to increase the energy-efficiency
   43         practices of low-income households; requiring the
   44         report to include certain determinations and
   45         recommendations; requiring that the report be
   46         submitted to the Legislature by a specified date;
   47         providing an effective date.
   48  
   49  Be It Enacted by the Legislature of the State of Florida:
   50  
   51         Section 1. Section 366.92, Florida Statutes, is amended to
   52  read:
   53         366.92 Florida clean renewable energy policy.—
   54         (1) It is the intent of the Legislature to promote the
   55  development of clean and renewable energy; protect the economic
   56  viability of Florida’s existing renewable energy facilities;
   57  diversify the types of fuel used to generate electricity in
   58  Florida; lessen Florida’s dependence on natural gas and fuel oil
   59  for the production of electricity; minimize the volatility of
   60  fuel costs; encourage investment within the state; improve
   61  environmental conditions; and, at the same time, minimize the
   62  costs of power supply to electric utilities and their customers.
   63         (2) As used in this section, the term:
   64         (a)“Class I clean energy source” means Florida clean
   65  energy resources derived from wind or solar photovoltaic
   66  systems.
   67         (b)“Class II clean energy source” means clean energy
   68  derived from Florida clean energy resources other than class I
   69  clean energy sources or class III clean energy sources.
   70         (c)“Class III clean energy source” means clean energy
   71  derived from nuclear energy or integrated combined-cycle power
   72  generation for which carbon capture and sequestration plans have
   73  been approved by the Department of Environmental Protection.
   74         (d)“Clean energy” means electrical energy produced from a
   75  method that uses one or more of the following fuels or energy
   76  sources: nuclear energy placed in commercial service after July
   77  1, 2009, integrated combined-cycle power generation for which
   78  carbon capture and sequestration plans have been approved by the
   79  Department of Environmental Protection, hydrogen produced from
   80  sources other than fossil fuels, biomass, solar photovoltaic,
   81  geothermal energy, wind energy, ocean energy, or hydroelectric
   82  power. The term includes waste heat from sulfuric acid
   83  manufacturing operations.
   84         (e)(a) “Florida renewable energy resources” means renewable
   85  energy, as defined in s. 377.803, which that is produced in
   86  Florida.
   87         (f)(b) “Provider” means a “utility” as defined in s.
   88  366.8255(1)(a).
   89         (c)“Renewable energy” means renewable energy as defined in
   90  s. 366.91(2)(d).
   91         (g)(d) “Clean Renewable energy credit” or “REC” means a
   92  product that represents the unbundled, separable, clean
   93  renewable attribute of clean renewable energy produced in
   94  Florida and is equivalent to 1 megawatt-hour of electricity
   95  generated by a source of clean renewable energy located in
   96  Florida.
   97         (h)(e) “Clean Renewable portfolio standard” or “RPS” means
   98  the minimum percentage of total annual retail electricity sales
   99  by an electric utility a provider to consumers in Florida which
  100  is that shall be supplied by clean renewable energy or through
  101  the purchase of clean energy credits from clean energy produced
  102  in Florida.
  103         (3)(a)Each electric utility must meet or exceed the
  104  following clean portfolio standards through the production of
  105  clean energy or the purchase of clean energy credits:
  106         1.By January 1, 2013, 7 percent of the previous years’
  107  retail electricity sales;
  108         2.By January 1, 2016, 12 percent of the previous years’
  109  retail electricity sales;
  110         3.By January 1, 2019, 18 percent of the previous years’
  111  retail electricity sales; and
  112         4.By January 1, 2021, 20 percent of the previous years’
  113  retail electricity sales.
  114  
  115  No more than 25 percent of the amount of the clean portfolio
  116  standard requirement for each year may be from a Class III clean
  117  energy source. A Florida utility that is a member of the South
  118  Eastern Reliability Council rather than the Florida Reliability
  119  Coordinating Council may purchase clean energy credits based on
  120  Class III energy sources located in other states.
  121         (b)Except as otherwise provided in this section, an
  122  investor-owned electric utility that fails to meet or exceed its
  123  clean portfolio standard is subject to a penalty pursuant to s.
  124  366.095 for each day such failure continues, and the penalty may
  125  not be recovered from the utility’s ratepayers.
  126         (c)The commission shall excuse an investor-owned electric
  127  utility from compliance with the clean portfolio standard if:
  128         1.The supply of clean energy and clean energy credits is
  129  not adequate to satisfy the clean portfolio standard; or
  130         2.The cost of producing clean energy or purchasing clean
  131  energy credits is prohibitive in that the total costs of
  132  compliance with the clean portfolio standard exceeds 2 percent
  133  of the investor-owned electric utility’s total annual revenue
  134  from retail sales of electricity.
  135         (d)The cost of compliance with the clean portfolio
  136  standards includes:
  137         1.The costs associated with the purchase of clean energy
  138  credits;
  139         2.The costs paid by the utility which are associated with
  140  the clean energy credit market; and
  141         3.The utility’s costs of its self-built Florida clean
  142  energy resource which exceed the costs to the utility of the
  143  generation source it would have otherwise built or the energy or
  144  capacity, or both, it would have purchased from another source.
  145  
  146  Expenses for Class III clean energy sources may not be included
  147  in calculating the cost of compliance.
  148         (e)The cost of compliance must be allocated separately for
  149  Class I and Class II clean energy sources and for each class for
  150  which the total cost of compliance is prohibitive if the costs
  151  exceed 1 percent of the investor-owned electric utility’s total
  152  annual revenue from retail sales of electricity.
  153         (f)Each investor-owned electric utility seeking to
  154  construct a Florida clean energy project must select the
  155  technology and project most likely to be cost-effective for the
  156  general body of ratepayers for that class of clean energy
  157  technology. In determining the most cost-effective construction
  158  option and in purchasing clean energy credits, an investor-owned
  159  utility shall seek the least-cost alternatives within each class
  160  of clean energy sources. The method of determining the least
  161  cost alternative shall be determined by the commission and may
  162  include requests for proposals, auctions, or another methods.
  163         (g)A clean energy credit remains the property of the owner
  164  of the clean energy resource from which it was derived until it
  165  is sold or transferred.
  166         (4)(3) The commission shall adopt rules providing
  167  requirements for:
  168         (a)Implementing the clean a renewable portfolio standard.
  169         (b)Determining the method of establishing least-cost
  170  construction or options for purchasing credits.
  171         (c)Determining what entities are eligible to produce clean
  172  energy credits.
  173         (d)Determining recovery of the costs of compliance with
  174  the clean portfolio standard, with such costs appearing as a
  175  separate line item on each customer’s bill.
  176         (e)Filing reports concerning compliance by utilities with
  177  the clean portfolio standard.
  178         (f)Creating a clean energy credit market requiring each
  179  provider to supply renewable energy to its customers directly,
  180  by procuring, or through renewable energy credits. In developing
  181  the RPS rule, the commission shall consult the Department of
  182  Environmental Protection and the Florida Energy and Climate
  183  Commission. The rule shall not be implemented until ratified by
  184  the Legislature. The commission shall present a draft rule for
  185  legislative consideration by February 1, 2009.
  186         (a)In developing the rule, the commission shall evaluate
  187  the current and forecasted levelized cost in cents per kilowatt
  188  hour through 2020 and current and forecasted installed capacity
  189  in kilowatts for each renewable energy generation method through
  190  2020.
  191         (b)The commission’s rule:
  192         1.Shall include methods of managing the cost of compliance
  193  with the renewable portfolio standard, whether through direct
  194  supply or procurement of renewable power or through the purchase
  195  of renewable energy credits. The commission shall have
  196  rulemaking authority for providing annual cost recovery and
  197  incentive-based adjustments to authorized rates of return on
  198  common equity to providers to incentivize renewable energy.
  199  Notwithstanding s. 366.91(3) and (4), upon the ratification of
  200  the rules developed pursuant to this subsection, the commission
  201  may approve projects and power sales agreements with renewable
  202  power producers and the sale of renewable energy credits needed
  203  to comply with the renewable portfolio standard. In the event of
  204  any conflict, this subparagraph shall supersede s. 366.91(3) and
  205  (4). However, nothing in this section shall alter the obligation
  206  of each public utility to continuously offer a purchase contract
  207  to producers of renewable energy.
  208         2.Shall provide for appropriate compliance measures and
  209  the conditions under which noncompliance shall be excused due to
  210  a determination by the commission that the supply of renewable
  211  energy or renewable energy credits was not adequate to satisfy
  212  the demand for such energy or that the cost of securing
  213  renewable energy or renewable energy credits was cost
  214  prohibitive.
  215         3.May provide added weight to energy provided by wind and
  216  solar photovoltaic over other forms of renewable energy, whether
  217  directly supplied or procured or indirectly obtained through the
  218  purchase of renewable energy credits.
  219         4.Shall determine an appropriate period of time for which
  220  renewable energy credits may be used for purposes of compliance
  221  with the renewable portfolio standard.
  222         5.Shall provide for monitoring of compliance with and
  223  enforcement of the requirements of this section.
  224         6.Shall ensure that energy credited toward compliance with
  225  the requirements of this section is not credited toward any
  226  other purpose.
  227         7.Shall include procedures to track and account for
  228  renewable energy credits, including ownership of renewable
  229  energy credits that are derived from a customer-owned renewable
  230  energy facility as a result of any action by a customer of an
  231  electric power supplier that is independent of a program
  232  sponsored by the electric power supplier.
  233         8.Shall provide for the conditions and options for the
  234  repeal or alteration of the rule in the event that new
  235  provisions of federal law supplant or conflict with the rule.
  236         (c)Beginning on April 1 of the year following final
  237  adoption of the commission’s renewable portfolio standard rule,
  238  each provider shall submit a report to the commission describing
  239  the steps that have been taken in the previous year and the
  240  steps that will be taken in the future to add renewable energy
  241  to the provider’s energy supply portfolio. The report shall
  242  state whether the provider was in compliance with the renewable
  243  portfolio standard during the previous year and how it will
  244  comply with the renewable portfolio standard in the upcoming
  245  year.
  246         (5)By February 1, 2010, and each year thereafter, the
  247  commission shall submit a report to the Legislature detailing
  248  further rulemaking activities, developments in the production of
  249  clean energy, how much and what types of clean energy are
  250  available in various regions of the state and at what cost, and
  251  any impediments to further increases in the production of clean
  252  energy in this state.
  253         (6)(4) In order to demonstrate the feasibility and
  254  viability of clean energy systems, the commission shall provide
  255  for full cost recovery under the environmental cost-recovery
  256  clause of all reasonable and prudent costs incurred by a
  257  provider for renewable energy projects that are zero greenhouse
  258  gas emitting at the point of generation, up to a total of 110
  259  megawatts statewide, and for which the provider has secured
  260  necessary land, zoning permits, and transmission rights within
  261  the state. Such costs shall be deemed reasonable and prudent for
  262  purposes of cost recovery so long as the provider has used
  263  reasonable and customary industry practices in the design,
  264  procurement, and construction of the project in a cost-effective
  265  manner appropriate to the location of the facility. The provider
  266  shall report to the commission as part of the cost-recovery
  267  proceedings the construction costs, in-service costs, operating
  268  and maintenance costs, hourly energy production of the renewable
  269  energy project, and any other information deemed relevant by the
  270  commission. Any provider constructing a clean energy facility
  271  pursuant to this section shall file for cost recovery no later
  272  than July 1, 2009.
  273         (7)(5) Each municipal electric utility and rural electric
  274  cooperative shall develop standards for the promotion,
  275  encouragement, and expansion of the use of renewable energy
  276  resources and energy conservation and efficiency measures. On or
  277  before April 1, 2009, and annually thereafter, each municipal
  278  electric utility and electric cooperative shall submit to the
  279  commission a report that identifies such standards.
  280         (8)(6)Nothing in This section does not shall be construed
  281  to impede or impair terms and conditions of existing contracts.
  282         (9)(7) The commission may adopt rules to administer and
  283  implement the provisions of this section.
  284         Section 2. Subsection (4) of section 366.93, Florida
  285  Statutes, is amended to read:
  286         366.93 Cost recovery for the siting, design, licensing, and
  287  construction of nuclear and integrated gasification combined
  288  cycle power plants.—
  289         (4) When the nuclear or integrated gasification combined
  290  cycle power plant is placed in commercial service, the utility
  291  shall be allowed to increase its base rate charges by the
  292  projected annual revenue requirements of the nuclear or
  293  integrated gasification combined cycle power plant based on the
  294  jurisdictional annual revenue requirements of the plant for the
  295  first 12 months of operation. The rate of return on capital
  296  investments shall be calculated using the utility’s rate of
  297  return last approved by the commission prior to the commercial
  298  inservice date of the nuclear or integrated gasification
  299  combined cycle power plant. If any existing generating plant is
  300  retired as a result of operation of the nuclear or integrated
  301  gasification combined cycle power plant, the commission shall
  302  allow for the recovery, through an increase in base rate
  303  charges, of the net book value of the retired plant over a
  304  period not to exceed 5 years or, if the commission determines
  305  that it would be more cost-effective to convert the existing
  306  generating plant to a biomass plant, allow for the recovery of
  307  the costs of conversion in base rate charges over a period that
  308  is determined by the commission.
  309         Section 3. Section 366.99, Florida Statutes, is created to
  310  read:
  311         366.99Natural gas delivery; surcharge for carbon
  312  reduction.—
  313         (1)This section may be cited as the “Natural Gas Act.”
  314         (2)(a)The Legislature finds that it is in the best
  315  interest of the state to improve the availability, reliability,
  316  and delivery of the natural gas to consumers in the state.
  317         (b)The Legislature further finds that natural gas is a
  318  domestically produced fuel and that an increase in the direct,
  319  end-use of natural gas will reduce dependence on foreign sources
  320  of fuel and provide consumers in this state with a diversity of
  321  fuel options to meet their energy needs.
  322         (c)The Legislature further finds that natural gas is a
  323  clean-burning fuel and that increased efficiency in the direct,
  324  end-use of natural gas will have an immediate impact on this
  325  state’s goal of reducing greenhouse gas emissions and improving
  326  air quality.
  327         (d)The Legislature further finds that approximately 90
  328  percent of the natural gas produced is delivered to consumers as
  329  useful energy and, therefore, it is significantly more efficient
  330  to use natural gas in direct, end-use applications and thus
  331  reduce the overall demand for natural gas in this state.
  332         (e)It is the intent of the Legislature to promote the
  333  direct, retail end-use of natural gas in this state.
  334         (3)As used in this section, the term:
  335         (a)“CR rider” means a carbon reduction rider that is a
  336  cost-recovery clause, separate and distinct from a utility’s
  337  base rates, and that uses the same allocation methodology
  338  applicable to the utility’s recovery of costs recoverable
  339  pursuant to the Energy Conservation Cost Recovery Rule, rule 25
  340  17.015, Florida Administrative Code.
  341         (b)“CRR revenue requirement” means the pretax revenues
  342  equal to:
  343         1.The utility’s weighted average cost of capital allowed
  344  in the most recent rate proceeding multiplied by the 13-month
  345  average net book value of eligible installations, including
  346  recognition of accumulated depreciation associated with eligible
  347  installations;
  348         2.State, federal, and local income taxes applicable to
  349  income calculated pursuant to paragraph (7)(a);
  350         3.Ad valorem taxes; and
  351         4.Depreciation expenses on eligible installations.
  352         (c)“CRR revenues” means the revenues produced through CRR
  353  surcharges, exclusive of revenues from all other rates and
  354  charges.
  355         (d)“CRR surcharges” means the surcharges determined
  356  pursuant to the procedures and subject to the qualifications set
  357  forth in this section.
  358         (e)“Eligible installations” means utility plant
  359  investments that:
  360         1.Connect supply sources of natural gas to a distribution
  361  system that serves primarily residential customers;
  362         2.Are in service and used and useful in providing utility
  363  service;
  364         3.Were not included in the utility’s rate base for
  365  purposes of determining the utility’s base rate in the most
  366  recent general base-rate proceedings; and
  367         4.Consist of mains that are greater than or equal to 4
  368  inches in diameter or that are certified to operate at a maximum
  369  allowable operating pressure greater than 60 pounds per square
  370  inch gauge, together with associated valves, regulator stations,
  371  vaults, transmission line taps, and other pipeline system
  372  components.
  373         (f)“Natural gas utility” or “utility” means any natural
  374  gas distribution company as defined in s. 366.02.
  375         (4)Notwithstanding any provision in this chapter or rule
  376  to the contrary, the commission shall allow a utility that files
  377  a petition for approval to establish a CR rider to be used by
  378  that utility to construct eligible installations in geographic
  379  areas of this state which are unserved or underserved with
  380  natural gas service.
  381         (5)Eligible installations shall be included for purposes
  382  of calculating CRR revenue requirements for no more than 5
  383  years.
  384         (6)The total amount of CRR revenues in effect in any 1
  385  year may not exceed 2 percent of the utility’s total annual
  386  nonfuel revenue for the previous year.
  387         (7)The commission shall establish the following procedures
  388  in determining a utility’s CRR surcharges:
  389         (a)The utility shall calculate its CRR revenue
  390  requirements annually in the manner prescribed by this section
  391  and shall file the appropriate petitions with the commission
  392  seeking to establish or change the CRR revenue requirements and
  393  surcharges for the following year. The annual filings shall
  394  include:
  395         1.An annual final true-up filing showing the actual
  396  eligible installation costs and actual CRR revenues for the most
  397  recent 12-month period from January 1 through December 31 which
  398  ends before the annual petition filing. As part of this filing,
  399  the utility shall include a summary comparison of the actual
  400  eligible installation costs and CRR revenues to the estimated
  401  total eligible installation costs and CRR revenues previously
  402  reported for the same period covered by the filing in paragraph
  403  (b). The filing shall also include the final over-or-under
  404  recovery of total CRR revenue requirements for the final true-up
  405  period.
  406         2.An annual estimated or actual true-up filing showing the
  407  8-month actual and 4-month projected eligible installation costs
  408  and any CRR revenues collected or projected to be collected
  409  during the estimated or actual true-up period. The filing shall
  410  also include the estimated or actual over-or-under recovery of
  411  total eligible installation costs for the estimated or actual
  412  true-up period.
  413         3.An annual projection filing showing the 12-month
  414  projected CRR revenue requirements for the period beginning
  415  January 1 following the annual filing hearing.
  416         4.An annual petition setting forth proposed CRR revenue
  417  requirements and CRR surcharges to be effective for the 12-month
  418  period beginning January 1 following the annual hearing. Such
  419  proposed CRR revenue requirements and CRR surcharges shall take
  420  into account the data described in this paragraph and paragraphs
  421  (b) and (c).
  422         (b)The CRR revenue requirements and any changes thereto
  423  shall be calculated and implemented in accordance with the
  424  provisions contained in this subsection. CRR revenues are
  425  subject to refund based upon a finding and order of the
  426  commission to the extent provided in this subsection.
  427         (c)The utility shall establish separate accounts or
  428  subaccounts for each eligible installation for purposes of
  429  recording the costs incurred for each project. The utility shall
  430  also establish a separate account or subaccount for any revenues
  431  derived from specific CRR surcharges.
  432         (d)When a petition is filed by a utility pursuant to this
  433  subsection, the commission shall conduct a limited proceeding
  434  and determine the CRR revenue requirements and CRR surcharges to
  435  be charged by the utility pursuant to this section.
  436         (8)This section expires December 31, 2014, unless reviewed
  437  and reenacted by the Legislature before that date. However, the
  438  procedures and other applicable provisions in this section and
  439  the CCR surcharges approved pursuant to this section shall
  440  remain in effect for the full term of all eligible installations
  441  approved by the commission before December 31, 2014.
  442         Section 4. Paragraph (a) of subsection (1) of section
  443  377.6015, Florida Statutes, is amended to read:
  444         377.6015 Florida Energy and Climate Commission.—
  445         (1) The Florida Energy and Climate Commission is created
  446  within the Executive Office of the Governor. The commission
  447  shall be comprised of nine members appointed by the Governor,
  448  the Commissioner of Agriculture, and the Chief Financial
  449  Officer.
  450         (a) The Governor shall appoint one member from three
  451  persons nominated by the Florida Public Service Commission
  452  Nominating Council, created in s. 350.031, to each of seven
  453  seats on the commission. The Commissioner of Agriculture shall
  454  appoint one member from three persons nominated by the council
  455  to one seat on the commission. The Chief Financial Officer shall
  456  appoint one member from three persons nominated by the council
  457  to one seat on the commission.
  458         1. The council shall submit the recommendations to the
  459  Governor, the Commissioner of Agriculture, and the Chief
  460  Financial Officer by September 1 of those years in which the
  461  terms are to begin the following October or within 60 days after
  462  a vacancy occurs for any reason other than the expiration of the
  463  term. The Governor, the Commissioner of Agriculture, and the
  464  Chief Financial Officer may proffer names of persons to be
  465  considered for nomination by the council.
  466         2. The Governor, the Commissioner of Agriculture, and the
  467  Chief Financial Officer shall fill a vacancy occurring on the
  468  commission by appointment of one of the applicants nominated by
  469  the council only after a background investigation of such
  470  applicant has been conducted by the Department of Law
  471  Enforcement.
  472         3. Members shall be appointed to 3-year terms; however, in
  473  order to establish staggered terms, for the initial
  474  appointments, the Governor shall appoint four members to 3-year
  475  terms, two members to 2-year terms, and one member to a 1-year
  476  term, and the Commissioner of Agriculture and the Chief
  477  Financial Officer shall each appoint one member to a 3-year term
  478  and shall appoint a successor when that appointee’s term expires
  479  in the same manner as the original appointment. The terms of
  480  members shall begin on October 1 and end on September 30.
  481         4. The Governor shall select from the membership of the
  482  commission one person to serve as chair.
  483         5. A vacancy on the commission shall be filled for the
  484  unexpired portion of the term in the same manner as the original
  485  appointment.
  486         6. If the Governor, the Commissioner of Agriculture, or the
  487  Chief Financial Officer has not made an appointment within 30
  488  consecutive calendar days after the receipt of the
  489  recommendations, the council shall initiate, in accordance with
  490  this section, the nominating process within 30 days.
  491         7. Each appointment to the commission shall be subject to
  492  confirmation by the Senate during the next regular session after
  493  the vacancy occurs. If the Senate refuses to confirm or fails to
  494  consider the appointment of the Governor, the Commissioner of
  495  Agriculture, or the Chief Financial Officer, the council shall
  496  initiate, in accordance with this section, the nominating
  497  process within 30 days.
  498         8. The Governor or the Governor’s successor may recall an
  499  appointee.
  500         Section 5. Subsections (1) and (3) of section 525.09,
  501  Florida Statutes, are amended to read:
  502         525.09 Inspection fee.—
  503         (1) For the purpose of defraying the expenses incident to
  504  inspecting, testing, and analyzing petroleum fuels in this
  505  state, there shall be paid to the department a charge of one
  506  eighth cent per gallon on all gasoline, alternative fuel
  507  containing alcohol as defined in s. 525.01(1)(c)1. or 2.,
  508  kerosene that is not (except when used as aviation turbine
  509  fuel), and #1 fuel oil for sale or use in this state. For
  510  purposes of carbon reduction, there shall be paid to the
  511  department a charge of 1 cent per gallon on all gasoline,
  512  alternative fuel containing alcohol as defined in s.
  513  525.01(1)(c)1. or 2., diesel, kerosene that is not used as
  514  aviation turbine fuel, and #1 fuel oil for sale or use in this
  515  state. These fees This inspection fee shall be imposed in the
  516  same manner as the motor fuel tax pursuant to s. 206.41. Payment
  517  shall be made on or before the 25th day of each month.
  518         (3) All remittances to the department for the inspection
  519  tax herein provided shall be accompanied by a detailed report
  520  under oath showing the number of gallons of gasoline,
  521  alternative fuel containing alcohol as defined in s.
  522  525.01(1)(c)1. or 2., kerosene, or fuel oil sold and delivered
  523  in each county.
  524         Section 6. Section 525.10, Florida Statutes, is amended to
  525  read:
  526         525.10 Moneys to be paid into State Treasury; payment of
  527  expenses.—All moneys payable under this chapter shall be payable
  528  to the department and shall be paid by it into the State
  529  Treasury monthly to be deposited as provided in this section.
  530  The inspection fee shall be deposited into the General
  531  Inspection Trust Fund. One-half of the proceeds from the carbon
  532  reduction charge collected pursuant to s. 525.09 shall be
  533  deposited into the Florida Renewable Energy Trust Fund and one
  534  half shall be deposited into the General Revenue Fund
  535  unallocated. All expenses incurred in the enforcement of this
  536  chapter and other inspection laws of this state for which fees
  537  are collected, including acquiring equipment and other property,
  538  shall be paid from the General Inspection Trust Fund. No money
  539  shall be paid to any inspector or employee created under this
  540  chapter except from the funds collected from the administration
  541  of this chapter and deposited into the General Inspection Trust
  542  Fund.
  543         Section 7. (1)The Florida Energy and Climate Commission
  544  shall prepare a report that:
  545         (a)Identifies methods of increasing energy-efficiency
  546  practices among low-income households as defined in s. 420.9071,
  547  Florida Statutes. The commission shall, at a minimum, identify
  548  energy-efficiency programs that are currently offered to low
  549  income households by community action agencies, community-based
  550  organizations, and utility companies in this state and similar
  551  programs that are offered to low-income households in other
  552  states.
  553         (b)Determines the statewide impact of improving the level
  554  of the energy efficiency of rental housing stock, including, but
  555  not limited to, the environmental benefits of such improvements
  556  and the potential fiscal impact with respect to property
  557  tenants, owners, and landlords and to the economy. The
  558  commission shall consider the relative equity and economic
  559  efficiency of the cost-share for such energy-efficiency
  560  improvements.
  561         (c)Provides recommendations for implementing energy
  562  efficiency practices among residents of low-income households.
  563         (2)The commission shall submit the report to the President
  564  of the Senate and the Speaker of the House of Representatives by
  565  December 1, 2009.
  566         Section 8. This act shall take effect July 1, 2009.